Bipartisan legislation signed by President Obama last Tuesday will significantly change the way the government monitors and reports on its own performance. One of the most important reforms contained in the new law is a requirement that targeted tax breaks — or “tax expenditures” — finally be analyzed based on their success in contributing…[Read more]
Our current budgeting process already makes it way too easy for lawmakers to overspend via the tax code. Unlike discretionary spending, most tax code spending programs (or “tax expenditures”) are permanent, unlimited in size, immune from the appropriations process, and ignored during the government’s own performance reviews.Rep. Boehner’s (R-OH)…[Read more]
Carl Davis started the topic Curbing tax expenditure addiction through procedural change in the forum Budgeteers 10 years ago
My organization (Citizens for Tax Justice) released a new report today describing how to reform the ways in which the Legislative and Executive Branches deal with “tax expenditures” (or special tax breaks). The reforms discussed within the report (such as performance reviews, sunsets, caps, changes to the committee system, etc) would serve as a…[Read more]
Carl Davis replied to the topic President’s Budget Proposal Continues to Delay Taking a Closer Look at Tax Breaks in the forum Budgeteers 10 years, 8 months ago
Agreed. The need for deficit reduction in general presents a very good opportunity for finally moving forward with this issue. And it seems sensible enough to think that the Commission could recommend creating a formal system to review tax expenditures. This would perhaps even be preferable to having the Commission take on the monumental task of…[Read more]
Carl Davis started the topic President’s Budget Proposal Continues to Delay Taking a Closer Look at Tax Breaks in the forum Budgeteers 10 years, 8 months ago
In recent hearings before the House Budget Committee, both Peter Orszag
(OMB Director) and Jeffrey Zients (OMB Chief Performance Officer) have
acknowledged the need to scrutinize “tax expenditures” — i.e. special
tax breaks aimed at achieving specific policy goals. Mr. Zients even
went so far as to express
“100% agreement” with the notion of…[Read more]
It’s time for the federal government to finally follow through on its long-unfulfilled promise to evaluate the usefulness of special tax breaks.
Does the research and experimentation tax credit, for example, actually encourage research? Or does it simply enrich high-tech firms? Does the mortgage interest deduction increase homeownership, or does…[Read more]
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